Top 3 Latest Industrial Manufacturing Trends For 2021 And Beyond
- Business Startup
Niccolo Romano- 0
- 8 minutes read
The pandemic has affected the world and has forced many industries to change their niches and the industrial manufacturing industry is no exception. Those manufacturing industries that have shifted with digitalization have gained more success than others in this crisis situation. In this article, we will discuss the latest industrial manufacturing trends of 2021 and beyond.
Recently many industrial product manufacturers are imbibing what they have learned from the prevailing crisis and they are investing in advanced technologies, processes, and also in new business structures to become stronger and also stay equipped for the next disruptive events.
Why Is There A Digital Shift By The Industrial Manufacturers?
Recently in an industrial event, George Kube who is the global vice president of industrial machinery and components at SAP said,
“One answer that I hear more and more to this question is, 'It's actually the COVID-19 crisis that is driving digitalization for us because it fosters the need to be more virtual and to be more digital in everything that we do.”
As a result of that, manufacturers are now pushed towards adopting alternative techniques that they were reluctant to adopt before. With these new technologies, new business models are being designed.
Latest Industrial Manufacturing Trends Of 2021 And Beyond
There evolved various trends in manufacturing industry 2021 that aimed at reshaping the industrial manufacturing sector. These current trends in industry have also allowed the manufacturer to learn to adapt to changing technologies which they were refusing to do for so long. So in the list below we will see the latest industrial manufacturing trends.
Customer demand for personalization
In today’s age, it is not enough to deliver quality products to its customers. Customers want more than that, they want their goods to be personalized. They want to get exceptional services along with that.
Customers also expect industrial manufacturers to personalize the products according to their unique needs, and deliver those customized solutions that are close to standard costs. For this, the manufacturers need to have greater flexibility, automation, and intelligence throughout their business life.
Along with that effective and automated collaboration is also required among engineering, sales, manufacturing, and aftermarket sales divisions.
Kube further added,
“Customers are getting ever-more demanding and they know exactly what they want, and they want exactly the right product from you.”
Gustavo Millan, who is also a part of SAP asserted,
“Manufacturing companies have been offering engineered to order, configured to order for a long time. What I think the shift is now is about customers that are increasingly demanding or expecting more personalized solutions at the mere standard cost. So, that means that manufacturing companies need to have full visibility of the value chain in order to stay close to the cost of the standard order."
Adopting Technologies
This is the next manufacturing technology trend 2021 and beyond. Presently industrial manufacturers are altering for advanced technologies to automate their business process, improve their work efficiency, and to formulate new business models.
Ankit Sharma from the industrial machinery and component industry while discussing about the manufacturing industry outlook 2021 explained,
“One interesting development of this pandemic is how the experienced work force, which was earlier not very comfortable with the adoption of digital technology, is now more accepting to trying new digital methods for servicing.”
Both customers and original equipment manufacturers can benefit from digitalization. This is because customers can directly order products or services online or get it done automatically based on the levels of inventory, and OEMs can witness relevant cost savings through decreased travel and resources.
To formulate an “As a service” model
Simply selling the product is no longer enough. Industrial manufacturers will have to sell customized products, design its sale, and also deliver the ongoing outcomes and values. There is a rising focus on the development of smart equipment and collection of generated data for new service-based infrastructures including those based on outcomes.
Ankit Sharma further added,
“It is fascinating to see how resilient the service business has been, even in the pandemic. Companies with a firm focus on service business have seen stability and even growth in service business revenues, where other business segments have declined. So, this is a good time to start the servitization journey.”
The Concept Of ‘Servitization’?
Servitization is the current trending word to describe the hype of using products or equipment to cater to a rising variety of services. This is often based on the data that has been generated and is allowed or developed by advanced technology.
This includes new business models that are based on subscriptions, predictive maintenance contracts, digital installation offerings, and innovative digital services that are based on outcomes.
The digital competitors are constantly trying to enter the market. This puts increased pressure on the industrial manufacturers to focus on business models that are based on service to raise margins and hit those targets of revenue.
Melchior Bryant from Bain & Company which is a global management consultancy, explained,
“Services are becoming an important addition to portfolios, especially to boost profitability. And for some OEMs, it is the only way to have profitable lifetime revenues.”
Few Strategies For Industrial Manufacturers
Industrial manufacturers should concentrate on the quality of products or services that they deliver and also on the product customization that the customers want. So based on that below are a few strategies that if prioritized by industrial manufacturers then it will be of great help for them. These can also be labeled as startup trends 2021 and beyond.
- Be customer centric. Place the customer at the epicenter of any discussion or decision,
- Support personalization and put emphasis on every customer separately.
- Adopt smart and digital solutions as the world is now shifting to the digital so you will find your market in the digital sphere only.
Conclusion
To succeed in the post pandemic economy and stay prepared for future disruptions, shifting digital is the only solution. It allows you to interact with each customer and prepare personalized experiences for every customer. In this article, we discussed the latest industrial manufacturing trends of 2021 and beyond.
